In terms of deliveries for the first two months of the year, Airbus (AIR.PA) and American rival Boeing (BA.N) were neck and neck, but the European aircraft manufacturer has a more difficult task to reach yearly estimates due to continued supply issues.
In January and February, both groups delivered a total of 66 jets. Nevertheless, while this accounts for about 12% of market predictions for Boeing’s 2023 deliveries, Airbus has only secured 9% of its 2023 objective of 720 aircraft, which is less than is typical for this time of year.
Guillaume Faury, the chief executive of Airbus, reportedly told executives that 2023 will be “make or break” for the company’s reputation in the market after missing targets in 2022.
It is the second rallying cry in a month, following his earlier warning that January had served as a “wake-up call,” according to sources.
Regarding internal meetings, Airbus declined to comment.
It initially set a 720-plane goal for 2022, then reduced it to 700 and finally gave up on it in December because to inadequate supply chains.
Airbus shipped 66 jets in the first two months of 2023, up from 20 in January and 46 in February. In comparison, there were 79 during the same time in 2022.
In light of a halt in 787 deliveries, Boeing reported on Tuesday that it delivered 28 aircraft in February, down from 38 in January.
Airbus typically starts the year slower than Boeing after operating nonstop in December, but this year’s total is below average for the European company.
According to Reuters, in the ten years prior to 2018, excluding the effects of the Boeing MAX crisis in 2019 and the COVID-19 interruptions since 2020, Boeing averaged 13% of its yearly deliveries in the first two months, compared to 12% for Airbus.
Airbus would need to achieve the second-sharpest increase from the level seen at the end of February during the previous 20 years if it is to surpass the first-quarter total of 140 net deliveries from last year.
Industrial issues are not exclusive to Airbus. Lessors claim that both aircraft manufacturers are delivering aircraft three to six months behind schedule, despite Airbus’s efforts to sustain increased industrial output.
According to Reuters, Boeing delivered an average of 13% of its annual deliveries in the first two months of each year, compared to 12% for Airbus, in the ten years prior to 2018, excluding the implications of the Boeing MAX issue in 2019 and the COVID-19 pauses since 2020.
If Airbus is to surpass the first-quarter total of 140 net deliveries from last year, it will need to accomplish the second-sharpest increase from the level achieved at the end of February during the preceding 20 years.
Industrial problems are not just a problem for Airbus. Notwithstanding Airbus’s efforts to maintain enhanced industrial productivity, lessors assert that both aircraft manufacturers are three to six months behind schedule in their delivery of aircraft.
The concerns appear to have attracted the attention of the Airbus board, which said in a report prepared ahead of the company’s forthcoming shareholder meeting that it planned to have in-depth sessions on supply-chain management and other issues.
The Federal Reserve Bank of New York reported last Monday that pressures had dropped to their lowest point since before the pandemic and that global supply chains had returned to normal.
But according to analysts, labor shortages and the impact of the Ukraine conflict on Europe’s energy prices continue to be a problem for aerospace.
According to Kevin Michaels, managing director of Aerodynamic Consulting, engine producers in particular are expanding to add two or three vendors for some parts.
The CEO of France’s Dassault Aviation (AM.PA) brought up the unpredictable nature of supply chains on Thursday.
“We are managing but it is real gymnastics every day,” Eric Trappier told reporters. “When a supplier says it isn’t doing well and can’t deliver, reaction time is close to zero.”
